Overall, Roblox's weaker growth and the change in investor sentiments toward high growth (but loss-making stocks) likely caused its share price to fall. Still, the company's long-term prospects remain largely intact.
Should you buy Roblox stock right now?
Mar 10, 2022 · On yet another tough day for tech stocks, with the Nasdaq down 1%, Roblox ( RBLX -3.64% ) stock fell harder than most. Shares of the online gaming platform plummeted 6.5% through close of trading ...
Is Roblox stock poised to rally soon?
Apr 08, 2022 · Roblox (NYSE:RBLX) Shares Down 6.4% americanbankingnews.com - April 6 at 12:00 PM: Executive Compensation News Is Crushing Roblox Stock investorplace.com - April 6 at 11:08 AM: 3 Things About Roblox That Smart Investors Know finance.yahoo.com - April 6 at 10:22 AM: Why Roblox Stock Fell Another 10% in March - Nasdaq nasdaq.com - April 5 at 7:20 PM
Is it too late to buy Roblox stock?
Feb 18, 2022 · Shares of Roblox ( RBLX 7.05% ) were down 18.4% week to date through Thursday's close, according to data provided by S&P Global Market Intelligence. In its latest fourth-quarter report, the gaming ...
Is Roblox stock a good investment?
Jan 11, 2022 · Overall, Roblox's weaker growth and the change in investor sentiments toward high growth (but loss-making stocks) likely caused its share price to fall. Still, the company's long-term prospects...
Is Roblox a good stock to buy right now?
Amid the current stock market volatility and Roblox's precipitous drop, the stock isn't a buy right now.2 days ago
Is Roblox stock expected to rise?
Stock Price Forecast The 16 analysts offering 12-month price forecasts for Roblox Corp have a median target of 62.50, with a high estimate of 108.00 and a low estimate of 45.00. The median estimate represents a +47.58% increase from the last price of 42.35.
Is Roblox losing money?
For one thing, the main reason Roblox lost money in the quarter is that it spent heavily in paying its game developer partners well, in spending on research and development, and in improving "infrastructure and trust and safety" -- all items I view as crucial investments for a company that aspires to be a growth stock.Nov 14, 2021
Will Roblox rebound?
Roblox is expected to rebound from current price levels.Mar 4, 2022
What happened
Shares of Roblox ( RBLX -8.68% ) were down 18.4% week to date through Thursday's close, according to data provided by S&P Global Market Intelligence. In its latest fourth-quarter report, the gaming platform posted decelerating growth in key operating metrics and issued a weak outlook for the year ahead.
So what
The more important metric that analysts watch is bookings, a non-GAAP (adjusted) measure of revenue. Growth in this metric has decelerated significantly over the last four quarters, from 161% in the year-ago quarter to just 20% in the fourth quarter.
Now what
These are likely just near-term speed bumps, as Roblox laps spikes in demand a year ago. While bookings growth is slowing, it's important to remember that time spent on the platform is still above 10 billion hours, which is close to record highs for the company. Overall, the collapse in the share price can be blamed on valuation concerns.
NYSE: RBLX
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Roblox's long-term prospects look promising, but there are some short-term concerns
Online game platform and game creation system Roblox ( RBLX -8.75% ) has performed well since its direct listing last year -- its shares began trading at around $60 and subsequently more than doubled over the next few months to hit a high of $141.60.
A solid quarterly result but with weaker growth
The COVID-19 pandemic has been disrupting industries of all kinds, especially airlines and hospitality, for almost two years now. For some companies though, COVID-19 has actually helped accelerate growth.
NYSE: RBLX
While solid, these numbers were weaker when compared to the previous quarters. For perspective, revenue grew 127% and 140%, respectively, in the prior two quarters. Besides, Roblox reported that total engagement hours in November 2021 -- while up 32% year over year -- came in weaker than the 4 billion hours clocked in August 2021.
Investors are moving away from growth stocks
The last two years were a great time to own growth stocks, with highflyers like Tesla rising more than tenfold between 2020 and 2021. The rising tide, however, has been lowered toward the second half of last year.
What's next for Roblox
Overall, Roblox's weaker growth and the change in investor sentiments toward high growth (but loss-making stocks) likely caused its share price to fall. Still, the company's long-term prospects remain largely intact.
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What happened
After Roblox ( RBLX -8.75% ) stock bounced back briefly yesterday from its sell-off earlier in the week, Friday arrived with more bad news for its investors -- and that news arrived already a month stale. As Reuters just reported, the video gaming platform's Chinese app "was shut down on Dec. 8."
So what
Yesterday's news on Roblox was of the good variety, though, with broker BTIG publishing a note estimating that the company grew its user registrations by 30% year over year in December, according to The Fly. BTIG called this "impressive" growth in a period when fewer kids were homebound with little else to do but play video games all day.
NYSE: RBLX
This good news, however, was undermined this morning by Reuters' revelation that nearly a month ago Roblox removed its LuoBuLesi app, created in partnership with Tencent Holdings and used by kids to play Roblox games, from app stores in China -- and hasn't restored the app since.
Now what
Responding to the story, Roblox told Reuters that removing the LuoBuLesi app was one of "a number of important transitory actions" the company took in preparation for revealing a new version of the app. But it does seem strange that the company would disable access to one app without having its replacement ready immediately.
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What happened
Shares of Roblox (NYSE: RBLX) were down 9.8% as of 10:32 a.m. ET on Wednesday, following the release of November engagement metrics.
So what
Investors were disappointed to see slowing growth in daily active users (DAUs) and time spent on the platform -- two key operating metrics that investors closely watch for insights about how well Roblox is attracting and retaining users.
Now what
The most important outcome of slowing engagement trends is how it impacts user monetization, since the more time spent on the platform is supposed to correlate to higher sales of Robux, the virtual currency used to unlock new experiences on the platform.
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